Oil Prices Continue to Rise

As a result of the unstable situation within the government of Libya, the world has seen a steady increase in oil prices. Although Libya may not produce the huge amounts of oil that countries like Saudi Arabia does, the recent uprisings in the middle east suggest instability. As a result of the civil war in Libya, with Muammar Qaddafi trying to resist being taken over by rebels, the world has lost only less than one percent of its crude oil production. Even though this seems like such an insignificant amount, the result it had on the market and the rest of the world was far more significant;

"Crude oil futures have risen more than 20 percent...In the past six months, gas prices have climbed more than 70 cents, but in the past two weeks alone, they're up 34 cents". Read More

 One explanation for this significant rise in oil prices could be a concern that Saudi Arabia and other major oil supplying countries may deal with similar situations as Egypt and Libya.If this happened, there could potentially be a serious world crisis for oil. The collapse of the Saudi oil production would affect world gas prices as well as almost every other industry because of the heavy reliance on oil.